Developer Jon Cronin has agreed to hand over the keys to the St. Regis Residences, the luxury condominium tower on the South Boston waterfront that remains more than one-third empty nearly three years after it opened.
Cottonwood Group, which holds a $240 million mortgage on the 114-unit building, will take control of the property, Alexander Shing, the Los Angeles-based real estate investment firm’s CEO, said in an interview on Friday.
The agreement is expected to be wrapped up as soon as next week. Cronin didn’t respond to a request for comment.
Cronin turned to Cottonwood for financing in October 2023, a year after the building opened, allowing him to pay off the outstanding balance of a $345 million construction loan. Cottonwood developed EchelonSeaport, a luxury condo and apartment complex across Seaport Boulevard from St. Regis Residences.
“I don’t want to put money anywhere other than the Seaport,” Shing said.
When the 22-story building opened in late 2022 — about 18 months behind schedule due to construction delays — the Boston condo market was in the doldrums after a 2021 pandemic-fueled boom ran out of steam. Cronin priced the units at a premium to competitors, which cost him sales, realtors said.
Sales of units priced above $2 million fell 14 percent last year in the city, according to The Collaborative Companies, which handles marketing for many luxury buildings, including the St. Regis Residences and EchelonSeaport.
Cronin’s deal with Cottonwood was reported earlier Friday in a Substack post by real estate broker John F. Gately.
Larry Edelman can be reached at larry.edelman@globe.com.